COST AUDIT AND COST AUDIT RULES PART 2

•     COST AUDIT AND COST AUDIT RULES PART 2
CONTEMPORARY AUDITING

•     DR SHASHI AGAGRWAL

•     MAINTENANCE OF RECORDS RULE 5

1.       EVERY COMPANY UNDER THESE RULES INCLUDING ALL UNITS AND BRANCHES THEREOF SHALL IN RESPECT OF EACH ITS FINANCIAL YEAR STARTING ON OR AFTER THE IST DAY OF APRIL,2014 MAINTAIN COST RECORD IN FORM CRA-1

2.       HAS TO BE MAINTAINED ON REGULAR BASIS SO THAT TO FACILITATE CALCULATION OF PER UNIT OF COST OF PRODUCTION OR COST OF OPERATIONS,COST OF SALES AND MARGIN FOR EACH OF ITS PRODUCTS AND ACTIVITIES FOR EVERY FINANCIAL YEAR ON MONTHLY OR QUARTERLY OR HALF YEARLY OR ANNUAL BASIS.

3.       SHALL BE MAINTAINED IN SUCH MANNER SO AS TO ENABLE THE COMPANY TO EXERCISE AS FAR AS POSSIBLE CONTROL OVER THE VARIOUS OPERATIONS AND COSTS TO ACHIEVE OPTIMUM UTILIZATION OF RESOURCES AND THESE RECORD SHALL PROVIDE NECESSARY DATA WHICH IS REQUIRED TO BE FURNISHED UNDER THESE RULES

TAX AUDIT

•    TAX AUDIT
CONTEMPORARY AUDITING

•    DR SHASHI AGGARWAL

•    TAX AUDIT

1.       EVALUATING WHETHER AN INDIVIDUAL OR COMPANY HAS ACCURATELY FILED THE INCOME TAX RETURNS OF AN ASSESSMENT YEAR.

2.       AN EXTERNAL AGENCY IS MANDATED TO ASSESS RETURN FILED FROM INCOME,DEDUCTIONS AND EXPENDITURES AND OTHER RULES AS MENTIONED BY THE INCOME TAX ACT 1961

REVISION SERIES OF AUDITNG FOR 2019 PART 1

COST AUDIT AND COST AUDIT RULES PART 1

• COST AUDIT AND COST AUDIT RULES PART 1
  AUDITING
  CONTEMPORARY AUDITING
  
  
• DR SHASHI AGAGRWAL
• INTRODUCTION

• FIRST TIME INTRODUCED IN 1965 IN INDIA WHEN THE CENTRAL GOVERNMENT ADDED CLAUSE d  TO SECTION 209 AND 233 OF THE COMPANIES ACT
• THE NEED :
• FOR MAINTENANCE AND PROPER USE OF SCIENTIFIC COST RECORD WHICH ARE ENGAGED IN THE MANUFACTURING AND ALLIED ACTIVITIES
• EFFECTIVE MEANS OF CONTROL IN THE HANDS OF THE MGMT
• CHECK ON BEHALF OF THE SHAREHOLDERS OF THE COMPANY/CONSUMER/GOVERNMENT

MANAGEMENT AUDIT

KINDS OF AUDIT REPORT ( AUDITOR REPORT 2)

KINDS OF AUDITOR'S REPORT

   AUDITOR’S REPORT 2
KINDS OF AUDITOR’S REPORT

·         CONTEMPORARY AUDITING/AUDITING

BY SHASHI AGGARWAL

•    AUDITOR’S REPORT

1.       INDEPENDENT EXPRESSION OF OPINION ON THE BASIS OF VARIOUS FACTS AND EVIDENCE COLLECTED AND PRESENTED BY THE AUDITOR REGARDING FINANCIAL STATEMENTS OF THE COMPANY

2.       THE AUDITOR EXPRESSES HIS OPINION WITH REASONABLE DEGREE OF SKILL AND CARE AS HE IS RESPONSIBLE FOR IT

3.       AUDITOR’S REPORT IS JUST AN OPINION AND NOT A GUARANTEE ABOUT ACCURACY AND CORRECTNESS OF THE FINANCIAL STATEMENTS

4.       THE AUDITOR VERIFIES THE ACCOUNTING DATA AND OTHER DOCUMENTS AND THEN HE PRESENT HIS OPINION

5.       THE AUDITOR IS NOT CERTIFY THE CORRECTNESS OF FINANCIAL STATEMENTS BUT TO REPORT WHETHER THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF THE COMPANY PRESENT TRUE AND FAIR VIEW.

#AUDITOR'S REPORT 1 : ELEMENTS OF AUDITOR'S REPORT

AUDITOR’S REPORT PART 1

•     AUDITOR’S REPORT PART 1
ELEMENTS OF AUDIT REPORT
DR SHASHI AGGARWAL

•     AUDITING/CONTEMPORARY AUDITING

•     MEANING OF AUDITOR’S REPORT

1.       AN AUDITOR’S REPORT IS THE FORMAL RESULT OF ALL THE EFFORTS THAT GOES INTO AUDIT

2.       COMMUNICATING THE AUDITOR’S FINDING TO THE INTERESTED USERS IS PART OF ALL AUDITS

3.       FINAL PHASE OF AN AUDIT INVOLVES PREPARING THAT COMMUNICATION KNOWN AS AUDITOR’S REPORT

4.       LANCESTER,” A REPORT IS A STATEMENT OF COLLECTED AND CONSIDERED FACTS SO DRAWN UP AS TO GIVE CLEAR AND CONCISE INFORMATION TO PERSONS WHO ARE NOT ALREADY IN POSSESSION OF FULL FACTS OF SUBJECT MATTER OF THE REPORT.

#COMPANY AUDIT 3 # AUDITING

#COMPANY #AUDIT 2

COMPANY AUDIT 1

COMPANY AUDIT PART 1

• COMPANY AUDIT PART 1
• PRELIMINARY BEFORE COMMENCEMENT OF THE AUDIT OF THE COMPANIES

• COMPANY AUDIT
• COMPANY IS AN ARTIFICIAL PERSON CREATED BY LAW HAVING A SEPARATE LEGAL ENTITY DIFFERENT FROM THE MEMBERS
• MANAGEMENT AND CONTROLS OF THE AFFAIRS IS DONE BY OTHERS KNOWN AS DIRECTORS
• MOREOVER THE SHAREHOLDERS CAN NOT KNOW WHETHER THE INVESTMENTS IN COMPANY ARE SAFE UNLESS THE DIRECTORS DULY INFORM THROUGH THEIR REPORTS
• ESSENTIAL FOR A COMPANY TO APPOINT AN INDEPENDENT AND QUALIFIED AUDITOR TO VERIFY AND CERTIFY THE TRUTH AND FAIRNESS OF THE FINANCIAL STATEMENTS

THE CONCEPT OF TRUE AND FAIR AUDITING

SA 610 (REVISED) USING THE WORK OF INTERNAL AUDITORS

•    SA 610 ( REVISED)
IMPLEMENTATION GUIDE TO STANDARD ON AUDITING (SA)610

•    SA 610

AUDIT DOCUMENTATION SA 230

• AUDIT DOCUMENTATION SA 230
  CONTEMPORARY AUDITING
  AUDITING AND ASSURANCE
• MEANING OF AUDIT DOCUMENTATION

SA 210,AGREEING THE TERMS OF AUDIT ENGAGEMENT

•    STANDARD AUDIT 210
AGREEING THE TERMS OF AUDIT ENGAGEMENT
CONTEMPORARY AUDITING

•    OBJECTIVE

•    THE OBJECTIVE OF THE AUDITOR IS TO ACCEPT OR CONTINUE AN AUDIT AGREEMENT ONLY WHEN THE BASIS UPON WHICH IT IS TO BE PERFORMED HAS BEEN AGREED THROUGH:-

1.       ESTABLISHING WHETHER THE PRECONDITION FOR AN AUDIT ARE PRESENT AND

2.       CONFIRMING THAT THERE IS COMMON UNDERSTANDING BETWEEN AUDITOR AND MANAGEMENT AND WHERE APPROPRIATE THOSE CHARGED WITH GOVERNANCE OF THE TERMS OF THE AUDIT ENGAGEMENT.

INDEPENDENCE OF AUDITORS AUDITING

CLASSIFICATION OF AUDIT 2 AUDITING

CLASSIFICATION OF AUDIT

• CLASSIFICATION OF AUDITS
• AUDITING / CONTEMPORARY AUDITING/AUDITING AND ASSURANCE

  CLASSIFICATION OF AUDITS

   ON THE BASIS OF SCOPE

1.       GENERAL

2.       SPECIFIC